Minister admits that tax cuts inadequate to stimulate biofuels

Hints of a Whitehall dispute about taxation of biofuels emerged at a parliamentary inquiry in September when Environment Minister Lord Whitty said that the existing duty differential had failed to stimulate domestic production and was too small for the UK to meet an EU target. The inquiry was also told by the biotechnology industry that genetically modified crops would make biofuels viable with smaller duty cuts.

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